Norwich Union transfers longevity risks to the capital markets

UK insurer Norwich Union has entered into a deal with Royal Bank of Scotland and Partner Re to transfer £475m of longevity related risks to the capital markets through what is essentially a longevity swap. The transaction will provide cover for these annuity/pension related risks up to 2018. Transferring these longevity risks to the capital markets benefits Norwich Union greatly as life expectancy is increasing and pensions are being paid out for longer than before.

We hope to bring you more details on the transaction structure later but for now further details on this deal are available from A.M. Best here via Trading Markets.